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Apple's iPhone accounted for 78% of AT&T smartphone activations in Q1 2012

post #1 of 23
Thread Starter 
AT&T sold 5.5 million smartphones last quarter, and 4.3 million of those were Apple's iPhone, the company revealed in its earnings report on Tuesday.

Sales of Apple's iPhone accounted for more than 78 percent of smartphones sold at AT&T. The carrier said iPhone sales were "helped by AT&T's 4G network, which lets iPhone 4S download three-times faster than other U.S. carriers' networks."

Among the 4.3 million iPhones that AT&T sold in the first quarter of calendar 2012, 21 percent of those were new to AT&T. The total 5.5 million smartphones AT&T sold in the three-month period was a new record for the company.

AT&T's results compare to 3.2 million iPhones activated at rival carrier Verizon. The iPhone did not carry as large of a share at Verizon, though it still represented more than half of the 6.3 million smartphones sold during the quarter.

AT&T said on Tuesday that about 30 percent of its existing postpaid smartphone subscribers are on 4G-capable devices. Starting with the release of iOS 5.1, the iPhone 4S began advertising to users that they are on a "4G" network when utilizing AT&T's high-speed HSDPA network.



The change allowed AT&T to further differentiate itself from competitors Verizon and Sprint, which offer slower CDMA networks that cannot reach HSDPA speeds. However, "true" 4G remains exclusive to long-term evolution devices, such as Apple's third-generation iPad, which is the company's first LTE-capable product. AT&T made no mention of iPad sales in Tuesday's press release.

The new iPad comes in two different models that allow connectivity with Verizon and AT&T's respective LTE networks. The third-generation tablet also differentiates between AT&T's "4G" HSDPA and true LTE connectivity by displaying "LTE" on the device when connected to a high-speed 4G LTE network.

For the first quarter of calendar 2012, AT&T earned consolidated revenues of $31.8 billion, up $575 million, or 1.8 percent, compared to the same period a year ago. The carrier earned 60 cents diluted earnings per share, compared to 57 cents diluted EPS in the first quarter of 2011.
post #2 of 23
So it seems like in the US iOS is has flipped the tables on Android for the last two quarters.... >50% on Verizon, 78% on ATT, I wouldn't imagine Sprint is anywhere but somewhere in between those numbers...... Thats a huge flip is it not? The verizon number is particularly impressive given their awful 3G network speeds and the plethoral of LTE Android devices they not only offer but push hard in ads and in store, because they pay less subsidies.
post #3 of 23

So, both AT&T and Verizon sold more iPhones in 1Q2012 than 1Q2011.  Apple's earnings announcement (later today) should be interesting.

post #4 of 23
Looks like Apple is set to open $8-9 lower probably because of AT&T activation figures being lower than last quarter. But last quarter was a holiday quarter with an extra week and the 4S was new. As much as analysts want to talk down these numbers or stir the pot with rumors of carriers reducing iPhone subsidies I think the real story is how iPhone still outsells Android/Windows smartphones combined and it's not even LTE yet. That is quite amazing.
post #5 of 23
Quote:
Originally Posted by noexpectations View Post

So, both AT&T and Verizon sold more iPhones in 1Q2012 than 1Q2011.  Apple's earnings announcement (later today) should be interesting.

Stock is down 1.6% pre-market. I wouldn't be surprised to see a sell off today. I just hope Apple blows everyone away with their results this afternoon.
post #6 of 23
Quote:
Originally Posted by Rogifan View Post
Stock is down 1.6% pre-market. I wouldn't be surprised to see a sell off today. I just hope Apple blows everyone away with their results this afternoon.

 

If Apple doesn't get over $40 billion revenue, we'll see the stock go back to $500.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #7 of 23

I wonder what the market was expecting a Quarter after the holiday Quarter? In any case this is pretty amazing stuff, Apple will probably - and for the first time - be the biggest selling OS on phones only, in the US. And may be > 50%. And, add in iPads and iPod touches and they are way ahead.

 

I think the 3GS, helps here. For the rest of the world the 3GS needs to be cheaper off contract ( with the release of the iPhone 5), and the same will happen there.

I wanted dsadsa bit it was taken.
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I wanted dsadsa bit it was taken.
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post #8 of 23
I read somewhere that the estimate for AT&T was 6M iPhone sales. Not sure if that was AT&T's estimate or some wall street analyst. Apple stock is down over $11 now pre-market so wall street clearly is not impressed with these figures.
post #9 of 23

Good points. The LTE iPhone may greatly accelerate the decline of Android in the U.S. 

 

BTW -- I love Verizon LTE on my new iPad. I think the analyst speculation that carriers might be less generous in allowing early iPhone upgrades (before contracts end) is likely to be wrong in the case of AT&T, because AT&T is going to have a very strong incentive to lock people in so that they can't switch to Verizon's superior LTE network. 

post #10 of 23

 

Quote:
Originally Posted by Tallest Skil View Post

 

If Apple doesn't get over $40 billion revenue, we'll see the stock go back to $500.

 


9to5Mac has a better graph which shows both AT&T and Sprint had significant falls in smartphones sales in Q1/12 versus Q4/11. Given that the majority of their smartphone sales are iPhones I suspect that means iPhone sales will be down quarter on quarter but up on the same quarter last year.

 

How does that factor into your prediction?

 

I do have cash to invest but Apple shares seem too volatile at the moment for me. The analysts are either predicting big falls or big rises.

 

A significant correction down to $400 or $500 followed by a steady increase over time rather than sharp increases would probably suit many small time investors. Especially if it drove out the speculators.

post #11 of 23

Might be a good time to buy some more APPL's.

 

I try to do some positive thinking here. Not sure I am successful jet.

post #12 of 23

 

Quote:
Originally Posted by Tallest Skil View Post

 

If Apple doesn't get over $40 billion revenue, we'll see the stock go back to $500.

 

I'm guessing $41B revenue, $12.25 EPS. But what do I know? :)

post #13 of 23

If you are shorting the stock you made a hell of a lot more in the last 2 weeks than hoping that the stock would rise to $700 as analysis are predicting. It a classic example of analysis putting out gloom and doom again to drive the stock down so they can short it and then buy it back low and ride it up again. Face it you can make money far fast buy shorting with bad news than you can every make on good news and the stock going up.

post #14 of 23

 

Quote:
Originally Posted by Tallest Skil View Post

 

If Apple doesn't get over $40 billion revenue, we'll see the stock go back to $500.

 

Fancy yourself to be an ANAL-yst, Tally?

post #15 of 23
Quote:
Originally Posted by AppleGreen View Post
Fancy yourself to be an ANAL-yst, Tally?

 

I certainly hope that I'm as wrong as any of them, but I'll leave the serious nonsensical predictions to that group alone.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #16 of 23

Isn't the real news here that AT&Ts iPhone activations dropped by over 40%?

 

iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales

My Android phone is the worst phone I've ever owned.
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My Android phone is the worst phone I've ever owned.
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post #17 of 23

Financial analysts will use whatever numbers they want to promote in order to get the whatever desired effect they are seeking.  The news could be good - given the iPhone represented the majority of smartphone activations or bad given quarterly sales numbers are down quarter to quarter (which doesn't make sense given it's not year over year quarter).

 

Others have said it - you've got institutions shorting Apple now in order to buy low - knowing full well that the stock is still undervalued and will go up both in the short-term and long-term.  Both competitors to Apple and analysts are looking to poke holes in the Apple model - but the problem is they're looking foolish doing so, given Apple's track record.

post #18 of 23

 

Quote:
Originally Posted by jmgregory1 View Post

Financial analysts will use whatever numbers they want to promote in order to get the whatever desired effect they are seeking.  The news could be good - given the iPhone represented the majority of smartphone activations or bad given quarterly sales numbers are down quarter to quarter (which doesn't make sense given it's not year over year quarter).

 

Others have said it - you've got institutions shorting Apple now in order to buy low - knowing full well that the stock is still undervalued and will go up both in the short-term and long-term.  Both competitors to Apple and analysts are looking to poke holes in the Apple model - but the problem is they're looking foolish doing so, given Apple's track record.

 

I wouldn't be so convinced about the short term. By July 24 AAPL could well be headed towards $500.

na na na na na...
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na na na na na...
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post #19 of 23

 

Quote:
Originally Posted by knightlie View Post

Isn't the real news here that AT&Ts iPhone activations dropped by over 40%?

 

iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales

 

no.

 

all smartphone sales were down. apple's market share is growing.

 

the real news should be:

 

android OEMs besides samsung will cease to exist soon (if things stay this way).

samsung sales drop.

 

but if you want a click bait article:

 

apple is doomed! sales fall 40% on at&t (no mention of more than 20% you growth)

 

post #20 of 23

 

Quote:
Originally Posted by knightlie View Post

Isn't the real news here that AT&Ts iPhone activations dropped by over 40%?

 

iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales

 


But you're not comparing apples to apples.  You can't compare Q1 to Q4 (holiday quarter plus 14 weeks) Q1 2011 had an extra week in it (14).  Yet AT&T had 1M more activations in Q1 2012 than Q1 2011.  iPhone is still over 50% of all smartphone activations on Verizon and 78% with AT&T.  The real news is 1) Q1 sales will always be weaker than Q4 sales and 2) the quarter after a product launch will have softer sales.  We've seen this with previous versions of iPhone.

post #21 of 23

 

Quote:
Originally Posted by pedromartins View Post

 

 

no.

 

all smartphone sales were down. apple's market share is growing.

 

 

 

 

Can you cite any facts showing that "all smartphone sales were down"?  Or that "Apple's market share is growing"?

post #22 of 23

AT&T has already clarified this - "Activation" is not a sale of a new device, it is an activation on the network of a device - The 2 numbers are not the same thing in their reports.

 

post #23 of 23

 

Quote:
Originally Posted by cvaldes1831 View Post

 

 

I'm guessing $41B revenue, $12.25 EPS. But what do I know? :)

 


Hey, I got pretty close on EPS! (real number $12.30). I missed the revenue number, but who knew they would squeeze out 47.4% gross margin.

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